BOISE, Idaho–Bankers joined with credit unions and a U.S. senator here in support of a piece of regulatory relief legislation.
The Northwest Credit Union Association, Nampa, Idaho-based Northwest Christian Credit Union, Sen. Mike Crapo (R -ID) and the Idaho Bankers Association were all part of a news conference here in support of S 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. The bill passed with bipartisan support out of the Senate Banking Committee, which Sen. Crapo chairs. The bill now has 26 Senate co-sponsors—13 Democrats and 13 Republicans.
“Unfortunately, community banks and credit unions across the country have long struggled to keep up with ever-increasing regulatory compliance and examiner demands coming out of Washington,” Sen. Crapo said during the event at the state capitol. “In local economies, this places a strain on small businesses looking to open or grow.”
“We recognize that Congress’ initial intent when they passed the Dodd-Frank Act of 2010, was to place well-intended restrictions curbing the practices of Wall Street’s “bad actors” who contributed so heavily to the economic downturn leading into the recession,” said NWCUA President and CEO Troy Stang. “But it was always recognized during the time leading up to the recession, that credit unions and community institutions did not engage in the same practices as those Wall Street actors.”
Joining Stang in representing the credit union movement was Brad Swartzentruber, president and CEO of Northwest Christian Credit Union. He shared an example of what regulatory overreach looks like in local financial institutions.
According to the NWCUA, the $55.8 million asset-sized Northwest Christian has made church loans for more than 20 years. Despite having no losses, foreclosures, or credit risks during or since the recession, Swartzentruber said, “today’s post-recession regulatory structure paints our credit union with the same brush as the regulations that are needed to oversee large, Wall Street financial institutions.”
He believes if S 2155 passes, it will set a better tone and tenor for regulation of both federally-chartered and state-chartered credit unions such as Northwest Christian, according to the NWCUA.
The NWCUA said Stang and Swartzentruber praised Sen. Crapo for his leadership in garnering bipartisan support of the bill, which is making its way through the Senate.
Stang is particularly encouraged that S 2155 contains the “1-4” legislation that Sen. Ron Wyden (D-OR) championed, according to the NWCUA. It will classify loans on non-owner-occupied buildings with one to four units as real estate loans instead of as MBLs, freeing up more capital for credit unions to loan to small businesses.
“The passage of this legislation,” said Sen. Crapo, “holds real promise for local economies across America.”
IBA President and CEO Trent Wright, and John Evans III, Executive Vice President of D.L. Evans Bank, also spoke in support of the legislation.